Operations Management – Inventory Management

Operations Management – Inventory Management

With effective resource planning, organizations can reduce inventory and service costs, improve efficiencies, and establish methods for continuous improvement. Depending upon the type of resource, there is a different type of planning that must take place. This can include material requirements planning (MRP), capacity requirements planning (CRP), enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), or product lifecycle management (PLM).

Research two specific types of resource planning.

1. Based on your research, explain whether or not you believe ERP and MRP are the only resource planning processes applicable to manufactured processes.
2. Can either ERP or MRP be used for service industries or can they only be used for manufacturing organizations?

Solution Preview

Operations Management: Inventory Management

In addition to material requirements planning (MRP) and enterprise resource planning (ERP), supply chain management (SCM) would also be an integral part of any manufacturing firm. In most cases, it is often the responsibility of the company to get the products to the retailers, since they often partner with such retailers to deliver such products. SCM is critical to any organization as it facilitates their ability to meet the demands of the market, delivering the products in time and in the preferred condition.

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